Why product liability insurance?

If your company deals with customers and supplies them with products, you are responsible for making sure those products are safe. Even in cases when a product wasn’t made by you, law can still hold you responsible for costs and damages if the product supplied by you was to lead to an accident.

Product liability insurance covers costs related to claims for personal injury or property damage caused by a faulty product your business designed, sold or supplied. This type of cover can be combined with other policies such as public liability and employer’s liability to ensure you’re protected if accidents happen.

So, whether you’re the manufacturer, retailer or wholesaler, you’ll need product liability insurance for protection against claims, should a member of the public suffer injury or have their property damaged, as a result of your faulty product. A faulty product is your responsibility if:

  • Your business name is on it
  • You can’t identify the manufacturer
  • Your business repairs or changes the product.
  • You imported the product from outside the European Union
  • The manufacturer has gone out of business
  • This means you would be liable for compensation costs if the product caused an accident

What does product liability cover?

Product liability insurance would pay for legal fees and compensation costs if a member of the public was to become injured or their property damaged, as a result of your product. It’s an essential addition to your insurance package if you design, sell or supply products to customers.

With this policy, you’ll be covered for:

  • Customer injuries caused by your faulty product
  • Damage to a customer’s property due to your faulty product
  • Undetected faults such as defects your quality control system couldn’t identify.

Most businesses will take out insurance that will cover them for compensation claims of between £1 and 5 million.

Our experts will compare quotes from a number of insurers operating in the UK and adapt your insurance to suit the needs of your business. Protect your business against product liability exposure now – call us on 0203 797 1287 or send us this quick enquiry form and we’ll be in touch.

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